Producers shooting in Nova Scotia can now access tax credits up to 45%. On March 8, Premier John Hamm announced a 5% increase to the province’s film and television tax credit, and a new 5% frequent-filming bonus. The announcements see Nova Scotia joining Ontario, Quebec, B.C. and Manitoba as provinces that have hiked tax credits over the last three months.

The Nova Scotia Film Industry Tax Credit, which is the same for service and domestic productions, has been increased to 35% from 30% for productions shooting in downtown Halifax. For productions shooting outside the city center, the credit has been raised to 40% from 35%. The tax-credit changes take effect immediately and are retroactive to Jan. 1.

In addition, a frequent-film bonus of an additional 5% has been introduced for companies that shoot two projects in the province over a two-year period. Nova Scotia is the second province to introduce such an incentive, after Manitoba.

Nova Scotia also extended its tax-credit commitment by 10 years and committed an additional $600,000 to the Nova Scotia Film Development Corporation, to be used toward existing programs in 2005/06.

According to NSFDC CEO Ann MacKenzie, the changes to the province’s tax-credit system will have an immediate and significant impact on both indigenous and service production in Nova Scotia.

One of the major reasons the province was pushing for tax-credit increases was because indigenous production volumes have been falling since 2002, when they sat at $89 million. In 2003, local production volumes fell to $68 million, and in 2004, hit $62 million.

Service production volumes have also been falling, though not to the same extent. In 2004, the province did $51 million in guest production, and $52 million in 2003. While final figures for the year ending March 31, 2005 remain unavailable, MacKenzie says they have dipped again.

‘Those numbers are going to be down slightly this year, for sure, but now, I expect the situation will turn around very quickly,’ she says.

According to MacKenzie, the local community has been working towards these tax-credit increases since before Ontario increased its credits in December, with Quebec and B.C. quickly following suit. However, she admits that tax-credit hikes in the major production centers put even more importance on the state of Nova Scotia’s credit.

‘Even the local producers were concerned about hikes [in Quebec, Ontario and B.C.], because when broadcasters commission productions, they’re bound to want to shoot in a province where they can get more tax credits to put towards financing,’ says MacKenzie, adding that at least one local production that was scheduled to shoot in Ontario will now likely stay at home.

-www.film.ns.ca